Out Of Nowhere, Oil Has Started Surging

WTI crude oil just made a big move to the upside:

Oil price Dec 19

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At 10:30 AM, the U.S. Department of Energy said that stockpiles of crude oil fell last week, but the drop in inventories was smaller than expected.

Expectations were for a 1.75M-barrel drop in inventories, but actual inventories only fell by 964K units.

DoE crude oil implied demand rose to 15.4M barrels per day from last week’s figure of 15.2M.

Meanwhile, distillate inventories dropped nearly 1.1M barrels despite expectations of a 1M-unit expansion.

It’s not clear if that has anything to do with it.